8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): September 20, 2016

PERMIAN BASIN ROYALTY TRUST

(Exact name of Registrant as specified in its charter)

Texas	1-8033	75-6280532
(State or other jurisdiction of incorporation or organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
Royalty Trust Management Southwest Bank 2911 Turtle Creek Boulevard Suite 850 Dallas, Texas		75219
(Address of principal executive offices)		(Zip Code)

Registrant’s Telephone Number, including area code: (855) 588-7839

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On September 20, 2016, the Registrant issued a press release announcing its monthly cash distribution to unitholders of record on September 30, 2016. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

This Report on Form 8-K is being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The information furnished is not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, is not subject to the liabilities of that section and is not deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release dated September 20, 2016.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

PERMIAN BASIN ROYALTY TRUST
By:	SOUTHWEST BANK, TRUSTEE FOR
	PERMIAN BASIN ROYALTY TRUST
By:	/s/ RON HOOPER
	Ron Hooper
	Senior Vice President

Date: September 20, 2016

EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release dated September 20, 2016.

EX-99.1

Exhibit 99.1

Permian Basin Royalty Trust

PERMIAN BASIN ROYALTY TRUST

ANNOUNCES SEPTEMBER CASH DISTRIBUTION

DALLAS, Texas, September 20, 2016 – Permian Basin Royalty Trust (NYSE: PBT) (“Permian”) today declared a cash distribution to the holders of its units of beneficial interest of $0.045907 per unit, payable on October 17, 2016, to unit holders of record on September 30, 2016.

This month’s distribution decreased from the previous month due to a decrease in the net production of oil for the underlying properties, along with the decreased pricing of both oil and gas production, the Waddell Ranch Properties contributed $1,366,781 to this month’s distribution.

WADDELL RANCH

Production for the underlying properties at the Waddell Ranch was 66,782 barrels of oil and 414,242 Mcf of gas. The production for the Trust’s allocated portion of the Waddell Ranch was 25,053 barrels of oil and 156,417 Mcf of gas. The average price for oil was $41.57 per bbl and for gas was $2.47 per Mcf. This would primarily reflect production and pricing for the month of July for oil and the month of June for gas. These allocated volumes were significantly impacted by the pricing of both oil and gas.

This production and pricing for the Underlying Properties resulted in revenues for the Waddell Ranch Properties of $3,798,670. Deducted from these would be the Lease Operating Expense (LOE) of $1,351,735, taxes of $350,577 and Capital Expenditures (CAPEX) of $273,983 totaling $1,976,294 resulting in a Net Profit of $1,822,375 for the month of August. With the Trust’s Net Profit Interest (NPI) of 75% of the underlying properties, this would result in a net contribution by the Waddell Ranch Properties of $1,366,781 to this month’s distribution.

ConocoPhillips has revised the 2016 capital expenditure budget which will total $2.45 million for the entire Waddell Ranch Project and $1.08 million net to the Trust. There will be no new drilled wells, no recompletions, and only some facilities projects.

	Underlying Properties					Net to Trust Sales
	Volumes					Volumes					Average		Price
	Oil (bbls)		Gas (Mcf)			Oil (bbls)		Gas (Mcf)			Oil (per bbl)		Gas (per Mcf)
Current Month
Waddell Ranch		66,782		414,242			25,053		156,417	*	$	41.57	$	2.47	**
Texas Royalties		23,420		26,696			22,249		25,361	*	$	42.55	$	4.52	**
Prior Month
Waddell Ranch		67,190		566,721	***		25,900		215,419	*	$	45.78	$	2.52	**
Texas Royalties		24,817		25,192			23,576		23,932	*	$	43.68	$	3.99	**

* These volumes are the net to the trust, after allocation of expenses to Trust’s net profit interest, including any prior period adjustments.

** This pricing includes sales of gas liquid products.

*** Last month’s total for gas on the Underlying Properties included a prior period adjustment to volumes of an additional 177,761 Mcf. Without this adjustment, normal production would have been 389,050 Mcf for prior month production.

TEXAS ROYALTY PROPERTIES

Production for the underlying properties at the Texas Royalties was 23,420 barrels of oil and 26,696 Mcf of gas. The production for the Trust’s allocated portion of the Texas Royalties was 22,249 barrels of oil and 25,361 Mcf of gas. The average price for oil was $42.55 per bbl and for gas was $4.52 per Mcf. This would primarily reflect production and pricing for the month of July for oil and the month of June for gas. These allocated volumes were impacted by the pricing of both oil and gas.

This production and pricing for the underlying properties resulted in revenues for the Texas Royalties of $1,117,248. Deducted from these would be taxes totaling $185,858 resulting in a Net Profit of $931,390 for the month of August. With the Trust’s Net Profit Interest (NPI) of 95% of the Underlying Properties, this would result in net contribution by the Texas Royalties of $884,820 to this month’s distribution.

General and Administrative Expenses deducted for the month were $112,357 resulting in a distribution of $2,139,685 to 46,608,796 units outstanding, or $0.045907 per unit.

The worldwide market conditions continue to affect the pricing for domestic production. It is difficult to predict what effect these conditions will have on future distributions.

Permian’s cash distribution history, current and prior year financial reports and tax information booklets, a link to filings made with the Securities and Exchange Commission and more can be found on its website at http://www.pbt-permian.com/. The new toll free customer service number for the trust is 1-855-588-7839.

*                 *              *

Contact:	Ron Hooper
	Senior Vice President
	Southwest Bank, Trustee
	Toll Free – 1.855.588.7839